Is IndiGo blocking AirAsia's India plans?

His comments had come after the Federation of Indian Airlines had written to the civil aviation minister requesting that the grant of permissions to the proposed budget carrier be put on hold.

In a letter dated February 11, FIA had, on behalf of Jet Airways, JetLite, and SpiceJet, objected to the grant of air operator’s permit to AirAsia India.

It had said FDI was allowed in this sector to primarily help the existing airlines, which were facing serious financial crises.

It was not meant for new ventures, which would only add to competition and deepen losses.

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Image: The logo of Malaysia's low-cost airline AirAsia Berhad is pictured on a structure as its staff undergo training at its academy in Sepang outside Kuala Lumpur.Photographs: Bazuki Muhammad/Reuters

Is IndiGo blocking AirAsia's India plans?

IndiGo, which had earlier rescued itself from joining the other players, also decided to send a letter on February 17, raising objections to grant of permit to AirAsia.

In January, FIA had also written to aviation secretary Ashok Lavasa against abolition of the 5-20 rule (which allows domestic airlines to fly on international routes after completing five years of operation and having a fleet of five aircraft).

“Considering that all airlines have in the process of fulfilling their obligation incurred substantial losses through domestic operations, it would be unacceptable for the government to now consider revising the policy by removing the 5-20 rule and benefit the international airlines’ joint ventures under consideration and approval.”

Is IndiGo blocking AirAsia's India plans?

IndiGo, with a market share of 30 per cent, is the largest domestic airline. It is also the fastest-growing carrier and plans to induct nine Airbus A320s to its existing fleet of 78 aircraft this year.

However it is only a conditional approval and the launch of service is subject to the Delhi High Court’s order in plea filed by Bharatiya Janata Party leader Subramanian Swamy and Federation of Indian Airlines.